As of 2021, 16 American states have legalized cannabis for recreational use, and more are expected to follow. This isn’t just great news for cannabis users.
Entrepreneurs are also enjoying this new opportunity for business. Depending on where you live, the marijuana business is still young with plenty of room for competition.
That being said, the industry is different than most. If you’re wondering how to start a cannabis business, you’ve come to the right place.
Read on to learn everything you need to know about starting a business in the cannabis industry.
Pick Your Cannabis Niche
There are different entry points into the cannabis industry and most entrepreneurs select one, rather than trying to tackle several. The three main niches are:
- Cannabis grower
- Cannabis infuser
- Cannabis seller
Growers and product infusers work more on the business-to-business side of sales. Their job is to focus on creating quality strains and products and partnering with sellers.
Sellers, on the other hand, don’t usually grow or create new products. Instead, they focus on helping customers find what they need. All three require a working knowledge of different types of cannabis, but selling requires excellent people skills, too.
Create a Business Plan
To start your cannabis business, you’re going to need a plan that will help you prepare and attract investors. Your business plan should cover:
- Your market and value projections (ie how much you think you’ll make over the next several years)
- An overview of what makes your cannabis business idea smart and unique
- How you intend to fund your cannabis business
- How you intend to market and grow your cannabis business
Your business plan should incorporate industry and local research. It should also demonstrate your business expertise. Finally, it should generate confidence that your business will succeed–and that you have a plan if it doesn’t.
Take Care of Legalities
This is where starting a cannabis business differs from other industries. Of course, you’ll need all of the proper licenses and permits to start your business and set up taxes. However, cannabis laws are still changing in many states, and you must ensure that you’re operating within the law.
We always recommend working with a lawyer to protect yourself from legal trouble.
Build Your Marijuana Business
Once you’ve got the funds and permits you need, it’s time to build your business. This means:
- Securing your location
- Coming up with branding for your business
- Marketing your business to your target consumers
A big part of branding and professionalism in the cannabis industry comes from packaging. You can learn more about hemp packaging here. Also, use social media to build your business. Using social networking for your cannabis business is a great way to connect with your audience and spread the word about it. It’s legal and provides a great way to connect with the large number of audience. So, next time you are working on marketing, use Cannabis business social network as a priority.
Learn How to Start a Cannabis Business Now and Get Ahead of the Curve
Did your state recently legalize recreational cannabis use? Are they getting ready to? Learning how to start a cannabis business now will keep you ahead of the curve in this rapidly growing industry.
Looking for more ways to improve your business? Want to learn how social media can improve your marketing plans? Take a look around for business advice and other business-boosting tips.